You’ve probably heard your share of mortgage legends over the years. It can be hard to know what’s fact and what’s fiction. When you’re in the market for a new home, there’s no better time to learn the truth. We’ve uncovered five myths that have made their way into mainstream homebuying. Myth #1: You must have a 20% down payment. Fact: Today’s qualified borrowers may secure a home loan by putting down as little as 3% or 3.5% of the purchase price. If you are…
With the purchase of your new home, it’s wise and often even mandatory to protect such a large investment with different types of insurance policies. Read on for our quick guide to the main types of insurance policies you might encounter and why you may need to purchase them. HOMEOWNERS INSURANCE Homeowners insurance is designed to protect you financially by providing money for repairs in the event your property sustains damage. This could include damage from fire, lightning, windstorms, hail, explosions, smoke, vandalism and many…
Each year can bring anything from minor tweaks to major overhauls in mortgage lending, possibly affecting how much house you can afford to buy. To help simplify how to financially prepare for homeownership this year, we’ve compiled some of the more important gamechangers for you to be aware of in 2014. New Qualified Mortage Rules In January, the Consumer Financial Protection Bureau (CFPB) implemented new regulations under the Dodd-Frank Act for determining what constitutes a qualified mortgage. “Qualified mortgage” is actually a technical term, referring…
When you’re buying a home, one of the things you’ll be expected to have at the closing table is title insurance. Q: What is title insurance? A: Title insurance protects against unexpected problems associated with the title to your new home, such as liens for unpaid taxes or unpaid work on the property, mistakes or omissions on the deed, undisclosed heirs, fraud and errors on examining records. Title insurance policies are available to both owners and lenders. While other kinds of insurance, such as auto,…
Whether you’re a renter ready to become a homeowner, or a would-be move-up buyer, saving for a down payment on a house can be a challenge. Depending on your timeframe, how much you need to save and how aggressive you’re willing to be, there are several things you can do to shorten the path to your dream home. Easy, everyday money-saving strategies Create a household budget. There’s a budget worksheet in our free First-time Homebuyer Guide, if you need it. Knowing what you spend each…
